Texas might have some competition as the top cryptocurrency securities fraud regulator in the US, following a Power Mining Pool cease and desist issued in North Carolina.
BehindMLM reviewed Power Mining Pool last September and, based on its business model and lack of disclosures surround its purported “cryptocurrency trading and mining”, concluded it was a 50 EUR in, 70 EUR out Ponzi scheme.
Having investigated Power Mining Pool itself, the North Carolina Securities Division seems to agree.
As noted in our own review, the Securities Division confirms they haven’t been able to establish whether Power Mining Pool’s purported owners, Andrew and Mike Conti, “are real people”.
The Securities Division classifies Power Mining Pool’s “mining pool shares” as a security.
As neither Power Mining Pool or its operators are registered to offer securities in North Carolina, the Securities Division alleges the company is violating the Securities Act.
As quoted from the cease and desist, these violations include failing to disclose
- the identity of the principals of Power Mining Pool and the true location of Power Mining Pool’s operations and management;
- information about the assets and liabilities of Power Mining Pool and any other information that indicates the means by which Power Mining Pool will provide investors with a return;
- information about the “mining rigs,” details of their location, hashrates, mining records, proof of their existence, and the risk factors associated with their use;
- information about the trading pool, details of its trading records, proof of its existence, and the risk factors associated with its use;
- the fact that the mining pool shares are securities and are not registered with the Administrator or any governing regulator;
- the fact that only registered dealers or agents can be paid commissions for referrals or sales of securities; and
- the fact that affiliates who receive such commissions for their sale of the mining pool shares without being properly registered are in violation of the Securities Act.
As a result of the March 2nd cease and desist, the Securities Board has ordered Power Mining Pool and its affiliates to cease and desist all business operations in North Carolina.
Power Mining Pool have the option of challenging the cease and desist via a hearing within twenty days of the order.
If no response is forthcoming within thirty days of the order being made, the cease and desist is deemed permanent.